Skip to main content

tv   Real Money With Ali Velshi  Al Jazeera  September 18, 2014 7:00pm-8:01pm EDT

7:00 pm
welcome back, everyone, this is al jazeera america, i'm tony harris in new york city. president obama is about to come out and speak about the government funding bill approved by the senate today and the house yesterday. the bill will fund the government through december 17th. it also includes at the moment at least, it includes president obama's request for $500 million
7:01 pm
to train and arm moderate syrian rebels to fight islamic state of iraq and the levant, the islamic state group. the house approved the bill yesterday. it now heads to the president's desk. here is the president. >> today the u.s. plans to build a brood and international coalition to degrade and ultimately destroy the group known as isil. france will join in air strikes. france is a strong partner in our efforts against terrorism and we're pleased that french and american service members will once again work on before half of your shared security and our shared values. more than 40 countries have now offered assistance as part of the coalition. this includes support for iraqi forces, strengthening the iraqi government. providing humanitarian aid to
7:02 pm
the iraqi civilians and doing their part. here at home, i'm pleased that congress, majority of republicans and democrats have now voted to support a key element of our strategy, the plan to train and equip the opposition in syria, so they can push back these terrorists. i believe we are strongest as a nation when the president and congress work together. and i want to thank congress for the speed with which they approached this issue. these syrian opposition norses are fighting both the brutality of isil terrorists and the tyranny of the assad regime. he had already ramped up assistance to the syrian opposition, with this new effort we'll provide training and
7:03 pm
equipment to help them grow stronger. this program will be hosted outside of syria in partnership with arab countries and it will be matched by our increasing support for the iraqi government and kurdish forces in iraq. the american forces that have been deployed to iraq do not and will not have a combat mission. their mission is to advise and assist our partners on the ground. as i told our troops yesterday, we can join with our allies to destroy isil without another war in the middle east. this shows the world that americans are united in confronting the threat from isil. with their barbaric murder of two americans these terrorists thought they could intimidate us, but they today they are learning the same hard lesson of petty tyrants and terrorists
7:04 pm
that have gone before. when you harm our citizens, when you threaten the united states, when you threaten our allies it doesn't divide us, it united it. we stand together to make sure that justice is join as well as to join with those who seek a better future for all people. our strikes against these terrorists continue. we're taking out their terrorists. we are destroying their vehicles and equipment and stockpiles and we salute our dedicated pilots and crews who are carrying out these missions. as commander in chief i could not be more proud of these people. as we go forward as one nation i would ask all americans to keep our forces and their families in our thoughts and prayers. thanks very much. >> all right. there you have it, the president
7:05 pm
of the united states making comments as promised on the passage of the senate today and the house yesterday of the spending bill, $500 million to train, equip, and arm the syrian opposition. i want to bring in david shuster. david an important update, information we knew about france coming on board and offering support to the coalition and being willing to assist in air strikes, but we got an answer to a critical question here, with the united states and this mission here in arming and equipping and training the free syrian army, what it is going to be asked to do, what its mission in syria is going to be, because we have been questioning whether it was to take on isil, isis in syria, or to continue its efforts against the assad government, and i think we heard pretty clearly now the president saying that it is to do
7:06 pm
essentially both, but isis first. >> and that came up in the hearings the last two days with. secretary kerry said it's isil first, and there is a lot of push back at that, because a lot of these groups are also perhaps more motivated to take on the assad regime, so for the president to undercut his secretary of state and say it is to do both is a pretty big maneuver. it doesn't change anything of course inside iraq, but it is a big development. the other part that is interesting, is isil in syria is on the move. they have taken control of 16 kurdish villages, a lot of fears that the kurdish civilians who are there, may face the humanitarian crisis that was faced a few weeks ago. so that may ratchet up the air
7:07 pm
strikes which have not yet started. >> and as we bring in mike viqueira here, mike, it's important to mention here, that it also i would think ratchets up pressure on the turks, that -- the united states and other western members of this coalition would be putting increased pressure on turkey to secure that border. would you agree? >> well, one of the most controversial aspects of what the president proposes to do is just what he came out and tried to build momentum on after the vote in the house and now the senate, and that is to arm the free syrian army, train them on saudi territory, and many people feel that plan is inadequate, far too hopeful that the free syrian army, which the president just a month ago disparaged as
7:08 pm
doctors, farmers and pharmacists and said it has always been a fantasy to arm them, and now it's a linchpin or a key aspect of what the president is going to do. so who else do you rely on if you are going to need boots on the ground to route out isil within syria itself. the kurds ef denthly have suffered a setback today. but this is a very sensitive subject in turkey. there are 49 turkish hostages being held, very sensetive. and we have seen administration officials dancing around this over the last three -- days, exactly who is in this coalition. we don't know specifically what nations will be carrying what load, and that speaks to the sensitivity of many of the sunni lead countries around the
7:09 pm
country, tony. >> so the president is clearly pleased to get this vote, the senate today and the house yesterday, $500 million to arm, equipment, and train the free syrian army, the syrian opposition working in that country, but that is a possess that is going to play out over the course of at least a year. >> yeah, let's talk about that, because this has been just take brought to life. listen, martin dempsey said this two days before in testimony in front of the senate. there are 31,000 -- we're now calling it isil, isil fighters total in iraq and syria. two-thirds reside inside syria. the secretary of state and secretary of defense said they cannot have a sanctuary wherever they are. so you are talking about 20,000
7:10 pm
fighters. who is going to route them out? these free syrian army troops that we will be training up and sending into syria to carry that fight as more or less a proxy. how long is that process going to take? five months to just get the training program up and running. those troops won't be ready until a year from today that is the estimate, and there will only be 5,000 of them, and even dempsey and top officials say that won't be nearly enough to get the job done. >> mike can i jump in for a second here? >> yes, please. >> doesn't this sound like an incremental training and arming strategy? if we're talking about a year before they are ready to fight, if you go back to what secretary kerry said in the hearing yesterday, it is isil first, isil fist in iraq, and we know
7:11 pm
that some of those isil fighters will fall back into their strong holds in syria, and at that point, since it's going to take a while for the peshmerga and the iraqi forces to route out isil in iraq, by that time, maybe you had enough syrian opposition fighters in place to take the fight to isil in, isis, in syria? >> yeah, but the problem with that is if in fact it is expanding its grip on parts of syria as david reported military advances against what we presume are syrian kurds in the north, then they are building their forces there. i had a chance to ask josh earnst about this report today, and whether or not these military gains by isil would be a precipitating factor to bring on air strikes? now they sort of have a sock
7:12 pm
answer, and that is the united states will do this at the time and place of their choosing, but if you look at the timetable that we just outlined in terms of training those syrian rebels, and then sending them, that would speak to a need to wait, but then we had chuck hagel talking about, well, many of these isil fighters are not very well organized, contrary to this dramatic sweep that they have made across iraq, they are perhaps overrated as fighters, that plus a coordinated well-trained fighting force working with other groups in syria, are going to serve to have a multiplier effect and you are not going to need to match them man for man. and i'll add one more thing. >> yeah. >> a new wrinkle from the white house, within iraq they are saying american advisors could be forward deployed with iraqis who are carrying the fight on
7:13 pm
the front line, the air strikes to advise them on tactical maneuvers as the battle is raging, and a lot of people are looking at that saying, they are really splitting hairs here. no combat troops, but certainly they will be in the line of fire. >> i talked to the admiral yesterday, and he said it has to operate this way. if the united states is going to be coordinating air strikes, it has to have some personnel on the ground to help with intelligence gathering, so that is not as surprising as it may sound to some. and we talked to josh rushing, the host of "faultlines" -- >> yes. >> with the peshmerga in the north of the country, and he is suggesting the same thing that you heard from josh earnst today, the idea that these isil fighters might be overrated.
7:14 pm
and if there is a strong presence, if there is a strong sort of -- we won't call it shock and ah, but if there is a concerted effort, a lot of these fighters will go away. >> and to that point, tony, there are a lot of folks in the pentagon who believe the operation in iraq will happen a lot faster than a lot of people think. 1600 military advisors are on the ground to essentially point their lasers at the targets. so the fighter bombers can hit the targets. there is a way you can separate the islamic state fighters, surround the ones in iraq, decimate them, show some victories in iraq, protect northern iraq, and then within six months, a year, whenever these free syrian army forces are trained, then concentrate your effort on syria, but the message is pretty clear from the present gone, it is iraq first,
7:15 pm
it is going after isil there, and the pentagon is not hitting any targets in syria, because they haven't identified any worth hitting yet, the focus is on iraq, and they are pretty confident they can make progress quickly. >> let me run this by both of you, i know there are serving progressive groups in washington, d.c., and i know you know this as well, who are really concerned about this part of the strategy. what the united states is proposing -- what this president is proposing for syria and the free syrian army. how about the vetting? are we sure that they are being to fight the fight we want them to fight? and there is real concern that if you really want to do this properly, $500 million is not nearly enough, which gets to the question of whether the president really believes in this strategy going forward, because it was just months ago, when he was rather disparaging
7:16 pm
of the free syrian army, so are you funding this to do the job, or are you funding this just to say you have a strategy for syria? >> part of this is perception, and there's no question about it. the united states is very eager to encourage the perception that this is simply not an american undertaking. arab nations are involved as well. and it is instructive to look at the case of saudi arabia. saudi arabia was very angry with the united states for backing off of the threat of air strikes after the chemical attacks by bashar al-assad. to the extent that the president had to make a special trip to go to saudi arabia and sit with the king and nullify their concerns, and there were serious concerns. and saudi arabia also has been agitating for quite sometime to get permission from the united states as they must to transfer some very sophisticated
7:17 pm
arms, the shoulder launch, ground to air missiles to these opposition fighters within syria. the administration has refused time and time again, and that really does speak to the reluctance of the administration. and you mentioned politics, i think we're missing the thing that provoked our appearance, the senate vote. 78-22. obviously another whelming vote. so many people, tony had reservations on both sides of the aisle on this thing, and yet it passed overwhelmingly. this measure has been before the senate since last june. so that in and of it's a is evidence that may are getting behind the president. on the democratic side, ten democrats, mostly to the left of the political spectrum voted against this thing.
7:18 pm
and then 12 republicans voted against it including presidentials a spire rants ted cruz and rand paul. so interesting dynamics here in washington, but an overwhelming victory for the president. and that's what precipitated him coming out to build on the momentum and develop the perception that this thing was moving forward not only for a domestic audience, but for an international audience that any president is demonstrating they are on top of this thing, and leading off his remarks noting that the french have decided to join in on the air strikes. >> yeah, you have got it. and i want to bring in david on this as well to talk about the politics. look, this is domestic politics. this is not a congressional body that wanted to vote on the use
7:19 pm
of force, but if you are -- if you are signing off in overwhelming numbers for this portion of the operation, you are signing off on the president's plan. >> you own it. and that's why -- hilary clinton got burned in 2008 because of her vote for the iraq war. and barack obama was able to challenge here from the left. you can only imagine when they hear that elizabeth warren voted against this. that is a dramatic vote for elizabeth warren. >> absolutely. >> and a couple of other interesting folks, mark baguettes, he is facing a tough race. pat roberts who is facing a challenge from an independent, who used to be a democrat. and regarding france, i think this may be one of the first times a u.s. arrangement with
7:20 pm
france has caused the president to come in at deliver a speech at 7:00 and lead with that. that's how things are playing out in the white house. >> yeah, that's interesting. and it is building this momentum, it is the president trying to send this message domestically to the country, that we have brood support for this plan moving forward here in the country, and also sending the message abroad to the rest of the world, maybe it is the thing that gooses along this coalition, and maybe in the days to become we get a better idea of what the other partners are willing to bring to the table, and that is still an open question for in particular many of the gulf states. david, mike, appreciate it so much. we'll rejoin ali velshi and "real money" right after this.
7:21 pm
7:22 pm
>> announcer: we now rejoin this program already in progress. ♪ the wait is over, alibaba has priced its shares at $68 per
7:23 pm
share. that means the chinese internet giant will raise at least $28 billion. the deal will give the company a value of $168 billion, bigger than amazon. shares will begin trading tomorrow under the symbol baba. the big question is whether it will live up to its hype. alibaba is china's biggest e-commerce company, running sites to reach hundreds of millions of customers handling more transactions than amazon and ebay combined. the man who owns it is jack mau. he has become something of an enigma. >> reporter: he may seem an unlikely business tycoon, jack mau, a former english teacher
7:24 pm
who describes himself as not a tech guy, skyrocketed himself to the top. he even dresses as a rock star. this is mau performing for his employees, shown in a documentary that follows his path to fortune starting the company in 1999, scraping together $60,000. ♪ >> mau's perseverance is a trademark. his personal setbacks are legendary. being rejected ten times by harvard is one of them. and brushed aside skeptics raising doubts that he could take on ebay. >> so we tried. and we said if they are the [ inaudible ] in the ocean, we are the [ inaudible ] in the river. [ laughter ] ebay closed its china site
7:25 pm
in 2006. >> really if you think about it, it takes a special kind of person and personality to build this company and have the kind of long-term vision and really substantial patience to build a company like alibaba over many many years. >> reporter: in china, mau holds rank with the likes of steve jobs and bill gates. estimates on his personal fortune wary. at 50 mau is no longer alibaba's ceo. he retired last year, but remains as executive chairman. >> it doesn't matter where the people choose yes or no in scotland's independence vote the damage has already been done. plus how a car could help change manufacturing as we know it. ♪
7:26 pm
>> on tech know, fire, devastating and out of control >> what's at stake here? >> there's approximately 360 homes... >> but now experts say they can predict how a blaze might spread >> this has been in a fire, now we gotta get the data out of it >> playing with fire... >> you guys are working just to save lives... >> i hope so... >> tech know every saturday go where science meets humanity >> sharks like affection >> spot on... >> don't try this at home... >> tech know, only on al jazeera america
7:27 pm
>> a new episode of the ground breaking series, edge of eighteen growing up fast... >> my quest is to find me, and me is not here... >> fighting for a better future >> if you gonna go to college, you gonna end up dead on the streets... >> life changing moments >> i had never been bullied, everyone hates me... >> from oscar winning director, alex gibney, a hard hitting look at the real issues facing american teens. the incredible journey continues... on the edge of eighteen only on all jazeera america
7:28 pm
the votes are in, scots went to the polls today to vote on independence from britain. with the vote expected to be very close, campaigners were knocking on doors trying to get scots to the polls. julie mcdonald is in edden borough. >> reporter: ghostly and almost hidden from view as the nation decides, a gray day with a very clear purpose, and a passionate mood. heading to vote millions of scots are turning out to decide the future of their nation. they came with neighbors, family, and with determination to mark their ballots.
7:29 pm
we now know 90% of the postal votes have returned their ballots. that gives us the first clue as to the level of turnout we can expect. here at the largest polling station, they are already calling the turnout here astronomical. this surge of voters is happening across the country. >> i think that's really important as a signal to the world that we can make really important decisions about the way the u.k. is driven and whether scotland is a separate nation peacefully. i think today i heard it is going to be the biggest turnout of any poll in the u.k. for almost 100 years. >> this is possibly the first time i felt my vote could actually make a major difference. not just a minor, little bit of political shifting, but actual significant change. >> i think the stress has been
7:30 pm
building up, it's just everything is so heightened on television, and emotions are high because it's an important decision, and we'll see what happens. >> reporter: the first minister of scotland cast his vote in northeastern scotland, while the leader of the no campaign voted in edemburough, while the scots make up their mind about the future of their country. >> i want to turn to the owner of a pub where clientele is overwhelmingly in favor of independence. he told me a week ago he was undecided. well, he is not undecided anymore. andrew which way did you vote? >> i voted no today. >> and you are the owner of a pub. last time you and i talked that
7:31 pm
is primarily patronized by people who voted yes. >> oh, yes, there are still yes stickers being put on my car, leaf lets and flyers being handed out left right and center. all in good fun. but they have their political desires for today. they know what they want to do, but unfortunately there was nothing that really convinced me to change my mind. >> last time i talked to you, i think you were leaning no, but you weren't unite sure. why in the end were you not convinced? >> i don't think anybody put forward an argument that really changed my mind. there is still a lot of questions. i will still concede that the better together campaign was particularly badly run. it didn't really give me a message i wanted to focus on or actually made me feel like i wanted to vote for them, but i
7:32 pm
think it came down to in the end less better together, but more a case of worse apart if you understand. >> right. so the bar was higher to cause you to vote for independence than it would have been to vote to stay part of britain, but the campaigns weren't fantastic for you either way. >> not really. i said before, the better together womaned a vert as it has been known as become an internet vote. people in the pub actually -- people who move in political circles gave me good arguments. told me -- gave me information, so it's not as many i'm uneducated, it just didn't sway me in the end. >> is this the only topic of conversation in scotland today? >> there is a lot actually.
7:33 pm
voter registration is up to 93 or 94%. i have heard from friends of mine who have been queueing to cast their vote today. because a they are only letting so many people in to the polling boths. there were talks they were going to close them early, however, all polling booths are going to stay open until 10:00, so you can basically vote at the closest area too you. >> good lord. okay. that's a good sign. regardless of the outcome this has so politicized folks that there is probably a good outcome coming somehow for scotland. >> yes, to get that many people registered and interested in politic is a massive leap forward. if you look at the recent
7:34 pm
european elections, only polled something like 40%. people feel like they are actually making a difference today. whereas in the past, it has been i'll vote for this party because i feel they will do something that i'm interested in, or they can better representment me than this party. today is very much about yes, we can do better, or no, we want things to stay the way they are. >> how are things at the pub, by the way? are you staying open all night? >> no, there was no late licenses granted. but i am going in by 9:00 tomorrow morning, by which point we should have a vert. so i'm going to take down a bottle of my finist whiskey from my personal collection.
7:35 pm
i'm not hard stance no person. if we're independent tomorrow, i'm very happy for that, if we're not, that's what i voted for. >> i bet your finest scotch is one of the best in the world. my best to you and your fellow countrymen regardless of the outcome. >> thanks so much. a disaster is how ken rowgoff describes the fact that scotland is even voting on independence today. ken served as the chief an cyst of the international monastery -- monastery fund from 2001 to 2003. ken, i have known you for a long time, i have virtually never heard you refer to anything as a disaster. why such strong feelings?
7:36 pm
this >> i'm not sure exactly the context of that vote, i do think the idea that you can break up a 300--year-old union with a 51% vote, is an oddity, but anyway that's what they have decided to do, and the people of scotland are voting. it is taking a big risk. it hopefully will work out well if the vote takes place and it is a yes and they go for independence, then of course they need to run things the best way they can, negotiate a reasonable peaceful divorce agreement with the rest of the u.k., not easy, but it raises a lot of risk, and in a world where so many smaller countries are looking into a successful stable currency union, it is really something to be pulling out of it.
7:37 pm
>> let's talk about something you warn about, and that is a brain drain. explain that. >> i grew up in rochester, new york, across the border from canada, and i watched what happened to quebec when they had a near miss on this. they consider a vote for independence. they voted no. but after that nobody trusted that it wouldn't happen again. so quebec is french speaking, and many of the english-speaking businesses and others moved out of quebec. it really lead to a long lasting slow growth and recession in quebec for decades. and scotland may face something similar if they don't quickly regroup even after a no vote. because david cameron has offered to devolve powers to
7:38 pm
scotland, and he wisely did that when he wasn't getting traction, but it could be higher taxes, and people might worry that there will be another vote. i think it's a different setup than in canada, but that's sort of my concern that it is generates this longer term instability, but nothing compared to a yes vote. >> i crew up on the other side of lake ontario from you in toronto, and a lot of toronto's success can be traced back to the fact that a lot of those people left montreal, where they were going to make their futures and then moved to toronto. >> absolutely. absolute lye. we have to hope that that doesn't happen in scotland, but i think it will take some really good leadership in scotland to make sure that that doesn't proceed to a greater degree than is necessary. but again, this is nothing
7:39 pm
compared to having a yes vote where there are so many questions, for example, what currency are they going to use? they say they are going to use the pound, but they will be more like ecuador or some country using the dollar than say a member of the euro zone. they could ask to join the euro. the european union is going to be very upset to have to deal with that, because there are other regions that want to break off, because if they see scotland got away with it, they will want to get it awa with it. and then if they have their own currency, well, that solves that problem, except they will no longer have the couple hundred year tradition of stable currency in the united kingdom, and they could have higher inflation, their borrowing rates
7:40 pm
would be high no matter what. you don't just jump to being sweden overnight. it could take decades of very, very long time of instability before that happens. >> ken good to talk to you. thank you for your incites. all right. coming up, the company that could turn the auto business on its ear, plus how talent could be to blame for the wealth gap in america. ♪ >> trafficked labor on the front lines? >> they're things, they're commodities... >> we go undercover... >> it isn't easy to talk at this base >> what's happing on u.s. bases? >> the tax payer directly pays the human trafficker >> fault lines al jazeera america's hard hitting... >> they're blocking the doors... ground breaking... they killed evan dead... truth seeking... >> they don't wanna see what's really going on >> break though investigative documentary series america's war workers only on al jazeera america
7:41 pm
7:42 pm
>> no noise, no clutter, just real reporting. the new al jazeera america mobile app, available for your apple and android mobile device. download it now there was a nice drop in the number of people applying for unemployment benefits last week. first time claims fell by 36,000, a sign a the job market is strengthening. applications are a proxy for layoffs. when fewer people seek benefits, it suggests that employers are keeping more employees.
7:43 pm
some americans are also becoming more wealthy. the next worth of americans in the april to june period rose to a record high. that's according to the federal reserve. at the same time, however, u.s. households also took on the most new debt in five years driven mostly by student and auto lines. but more borrowing can be sign of confidence. u.s. net worth has rebounded dramatically, but the wealth gains are flowing mainly to affluent americans. investors are wondering if the country is about to default on billions of dollars in debt, that is made worst by news that the government want to sell a state-owned company, citco. the company is worth billions of dollars. harris explains why a sale of citco is not sitting well with many venezuelians.
7:44 pm
>> reporter: practically free petrol is one of the reasons that the country's oil industry is so important to venezuelans. >> translator: fvenezuela lay wants, to get rid of sitco would be like cutting off one of our arms. >> citco owns some 14,000 gas stations and three refineries across the united states, the government now sees that as a potential liability. >> judicial uncertainly is leading the government to consider selling its assets in the united states. >> reporter: it is currently facing lawsuits stemming from its nationallization of foreign assets. citco would be at risk of those
7:45 pm
lawsuits were lost. >> translator: if the judgment is unfavorable, citco is the asset that is most widely abroad and it could be seized. analysts believe proceeds from the sale of citco would go where most other cash has gone in the past to continue paying for the expensive social programs. >> translator: our government always says fresh money would be used to invest in development, but it always ends up being used to cover the increasingly high costs of its social subsidies. >> reporter: the potential proceeds wouldn't do much to brighten the inflation. analysts say the country has
7:46 pm
fallen into recession. now let's imagine a world where the cars you drive to the gas station don't come from an assembly line, instead they come from a 3-d printer. last week an arizona company called local motors created the first drivable 3-d-printed car. jake ward looks at the mechanics and explains why even larger vehicles may soon be produced from 3-d printers. >> when we think about manufacturing, we think about sub tracktive manufacturing. this is what is the cutting edge of routers. systems for carving away steal and plastic. but the next generation is going to be additive manufacturing. you know it as 3-d printing. and it is extruding certain materials in really, really complex forms in one go.
7:47 pm
here is an example. this is a single object printed in one go, layer by layer, but it's actually a gear. a fully functioning, moving mechanism. and that's really the low end of this whole huge revolution we're seeing in manufacturing. the news here is the creation of the full body work of a car, and when you think about a car, you think the body can't be hard to make can it? it turns out it is incredibly hard to make. the average car has about 35 body pieces that go into it on average, and each requires a whole unique custom made set of machines, tools and dyes created specifically for it. so if you change one part all of that has to be redone. so the experiment here between auto desk, local motors, and oak ridge national laboratory, is to
7:48 pm
create a full body work of this car. the idea that in 48 hours you can bang out a new design. 3-d printing makes that really possible. and that's why okay ridge is also working with lockheed martin to build fighter jet parts out of the same process. so you will see 3-d printing create not just small tchotchkes like this, but larger parts in the future. all right. coming up next, a pioneer in silicon valley steps down. plus income inequality, i'm going to talk to one of the greatest thinker on the issue, who says talent is no longer king. stay with us. ♪
7:49 pm
>> a firsthand look at the ongoing battle against the isil threat. >> bombs are cracking off in the distance...
7:50 pm
>> this is a booby trap in the islamic state >> ...a sniper around the corner here... >> from the front lines, josh rushing reports, on al jazeera america real reporting that brings you the world. giving you a real global perspective like no other can. real reporting from around the world. this is what we do. al jazeera america. ♪
7:51 pm
a major changing of the guard in the technology industry, larry ellison, announcing today he is giving up his ceo position at oracle. he founded oracle back in 1977 when he and bill gates and steve jobs were pioneers in silicon valley. he has been oracle's only chief executive. he is one of the richest men in the world. his sailing team won two of america's cups, he lives on a estate worth nearly $100 million. and owns a hawaii island. not bad for a college dropout. he is turning over the ceo reigns to mark heard formerly of hewlett-packard. he has been criticized for his out sized compensation at oracle. shareholders were upset to learn
7:52 pm
he was paid nearly $77 million. i know you are fired up about inequality too, based on the tweets you have been sending me. i promise not to get too bogged down in chief political bickering, but continue to speak out folks i know with good solutions. in the interests of time let's call this man academic director of the martin institute at the university of toronto. you wrote a fascinating piece on the rise in what you call the likely fall of the talent economy. now first of all, what do you mean by the talent economy? >> i mean an economy now more dominated by folks who have to demonstrate independent judgment and decision-making in their job, and that's about a third of americans now. two times up from what it was 50 years ago. and those folks are driving the
7:53 pm
fortunes of companies, and extracting more and more and more of the value out of the economy, and the rest of the economy is -- is not moving ahead, so the tricky thing is talent is great. it's great to have it, but there needs to be some kind of a balance between the talent, especially the highest-end talent gets and everybody else. >> interest language, you said exacting value out of the economy as opposed to creating value. some would argue, i'm sure larry ellison would argue, i created value. these companies that cause you to buy things that you didn't even know you needed. >> yes, and they create lots of jobs. wealth for the shareholders and the communities he is in. there are many members of the talent fas k these days who are not. hedge fund managers being first among them. all they do is trade value.
7:54 pm
and they are now the highest compensated people in america. >> what -- how do you make a determination as to what the so-called group of people you are talking about, talent, how they should be paid? >> i guess they should be paid at a level that enables the average american to still move forward. that's tricky. it's obviously not an easy question, but over the last 25 years, net, the median american has not moved forward from 89 to 2012. and i just think there's a challenge. that's happened before for relatively long periods of time, but in the great depression. in the great depression, the top 1% also suffered. in this period while the median american was not moving forward net -- >> the top 1% was getting a lot richer. >> yeah, they were doing
7:55 pm
fantastically. so it's not so much that i think all talent is undeserving, far from it, the talon creating value and jobs is probably worth it, but can the economy deep working in a democracy if the average american starts to feel like there is no prospect of moving forward? >> but is there a number. is there a multiple of what the average salary is? is there a number, is this a tax thing? i mean the issue we are speaking of is the growth of inequality, and everybody around the world is recognizing this now. the world economic forum, calls america the third most competitive country in the world, but warns the growth is faster here than in other countries. >> that's right. i don't think it's so much that ratio. i think the secret for a
7:56 pm
democracy is to have the 51st percentile person, who in some sense the swing voter feel like i have a good prospect of moving forward. >> do you have to have a good prospect of being elson? >> i don't think so. i would argue between 1776 and 1989 that pretty much worked. >> yeah, and you thought your kids could go beyond where you were? >> that's right. >> and that has come to a stop now. >> that's right. i just think it's a really significant situation that unless there is some work on it, i often say i think we're potential heading towards a 1935 moment. >> what do you mean when you say that? >> that's the year that the roosevelt government enacted the
7:57 pm
national labor relations movement, and created the national labor relations board. and they road to the help of the labor. >> and many people have argued that is not in the case anymore. we have all of these rules. we don't even need unions some would say. >> that's right. but capital was beating down and abusing labor. now we have in the cat bird seat talent, and if it treats labor and capital the way capital was treating labor up until 1935, i think the government in some sense will be invited in, and i don't think it worked out all well in 1935. >> so talent should figure this out on its own ahead of the game. >> yeah. >> and pension funds and
7:58 pm
sovereign wealth funds they have the biggest chunk of capital. and they have to start acting differently towards talent. >> all right. roger thank you so much. well as we continue to explore this topic of inequality in america, i repeat my request to you, spare me pe politicics of envy nonsense, this is trying to find out why the economy is working so well for some and so poorly for many. the point of these types of discussions is not to punish success like that achieved by the iconic business leaders you are seeing behind me. they and others are innovators, job creators, they are folks who were given the opportunity to succeed in america.
7:59 pm
i begrudge them not their money, and i'm not prepared to say whether they should say more or less, yet roger just argued that talent must show self restraint. in a country where the majority of folks have the money to buy what the men behind me were selling certainly makes sense. the point is having the courage to acknowledge america remains a country that can produce the success behind me, but must still strive to deal with the decline in the income aaron alexis wealth of the millions who are sharing in that success. keep watching even if your politicians try to distraction, you are going to have a home for an intelligent search for solutions right here. that's our show for today. i'm ali velshi. thank you for joining us. ♪
8:00 pm
hi, everybody, this is al jazeera america. decision day, scotland's historic vote on independents. the polls are closed. the syria question, will the united states arm syrian rebels to fight isil? california wild fires. the state of emergency and the technology used to fight the flames.

82 Views

info Stream Only

Uploaded by TV Archive on